Malta has had the fastest rise in property prices among European Union countries, and recent news suggests that property inflation will remain in double digits for the foreseeable future.
Malta's increase of almost 18% was higher than both France and Spain, according to figures supplied by the European Mortgage Federation.
House prices fell in two EU countries, Germany and Austria, while they hardly rose in Portugal, Greece, and the Netherlands.
And real estate insiders on the island expect that significant growth will continue for a few more years, giving Malta the potential to be considered as an attractive area to invest by investors.
Tribune Properties, a company that specializes in property for sale in Malta, reports that the first quarter of 2006 saw a lot of activity, with the upper end of the market performing especially well.
'The first couple of weeks of January were slower than the same period last year,' says Tribune's Managing Director Michael Johnson, 'but since then, the number of sales has matched last year – a very good year – but villas with an asking price of a million Euros or more have seen increased activity, and a good number of sales'.
Hotels and Vacations in Malta
In comparison to the first quarter of 2005, the independent information site for holidays and hotels in Malta http://www.yourmalta.com reports an increase in interest in their property pages, with roughly a third more page views.
Property inflation at the levels observed in Malta is uncommon in other nations, but fresh economic activity on the island may keep property demand high for several years.
Malta is planning a new 'Smart City,' which may compete with the rest of Europe as a business destination for internet and other high-tech firms. Inward investment and 5000 new jobs are expected to help the Maltese economy, which will boost the property, hotel, and holiday markets. English is spoken fluently in Malta, and combined with relatively low salaries, it is hoped that inward investment and 5000 new jobs will help the Maltese economy, which will boost the property, hotel, and holiday markets.
The tourism business is critical to Malta's economy, and it is believed that the entry of low-cost airlines offering additional flights to Malta will boost the Malta vacation sector as well as the many hotels in the country.
Malta's property prices today could look like a bargain in five years if it can combine the attractions of a Mediterranean tourist island with contemporary infrastructure and high-tech friendly business in a low-tax environment.
With the advent of low-cost flights to Malta from the UK, more buyers will be able to look at the island for holiday homes that can be used for long weekends, and the Malta hotel business will profit from the 3 and 4 day tourists perceiving the island as a viable destination.
The bulk of visitors to Malta have traditionally come from the United Kingdom, although this may change in the coming years to a more diversified mix.
Last year saw a record number of Italian visitors, and significant inquiries from Scandinavia, Holland, France, and Belgium have been received at estate agents around the island, helping to boost demand for Malta properties.
Property brokers, hotel owners, and the Malta tourism industry are beginning to see the future with optimism after years of worrying how Malta would fit into the modern world.
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